Friday 27 November 2020
Last update on Friday, November 27, 2020 At 10:58 AM
Algeria, the world's 10th largest gas producer, says it will see a 4.7% drop in its gas exports. These negative forecasts will also impact the country's ability to support local demand for gas, which continues to grow.
Algerian Energy Minister Abdelmadjid Attar announced that the country’s gas exports are expected to fall by around 4.7% this year, or 41 billion m3 in 2020 against 43 billion m3 in 2019. This trend is believed to be due to the decrease European demand and American competition in gas supply.
In 2019, oil and gas revenues were $ 33 billion compared to the $ 23 billion forecast for this year. This is a significant drop given that the North African country derives 95% of its foreign income from sales of oil and gas.
As for Algerian gas production, it should reach 126 billion m3 in 2020 against 127 billion m3 established the previous year. It should be noted that the gradual arrival of mature deposits and the lack of investment have heavily contributed to the drop in production, while on the contrary national consumption has increased by 5.3% on average per year since 2009.
As a reminder, Algeria passed a law last year aimed at making its oil and gas sector more attractive.
Source Ecofin Agency
